Mexico fact of the day

Thus far, the only part of the currency universe that has responded consistently to the Trump phenomenon is the Mexican peso.

Not surprisingly, given the threat his policies pose to Mexican trade, Mr Trump’s poll fortunes have been inversely correlated to those of the peso. “That could stretch to a wider group of trade-sensitive currencies,” says Mr Juckes.

The peso has fallen almost 8 per cent against the dollar in the last six months, making it the worst-performing emerging market currency.

That is from Roger Blitz at the FT.  Some of that movement of course may have come from the humiliation of the incumbent government, rather than the prospect of a Trump presidency per se.

And as the U.S. election becomes a tighter race, American equity prices do not seem massively perturbed.  The worry from last week seemed to be more about Fed tightening than anything else.


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